The share price of Bangchak Corporation Public Company Limited (SET: BCP) rose 3.36% to THB30.75 per share in the intra-trading session on Monday morning following the inclusion of the company’s securities into the SET50 index, effective after today’s session.
LH Securities stated that BCP has regained investor interest as the company is expected to greatly benefit from refinery business improvements in 2Q68F (second quarter of 2025), driven by a notable rise in crack spreads (refining margins) thanks to its high proportion of gasoline and fuel oil refining. Additionally, ongoing efficiency enhancement projects and synergy from the merger with BSRC are anticipated to further lower production costs in 2H68F (second half of 2025).
BCP also holds significant hidden value from its land assets, including holdings in Bangkok, refinery land, and nationwide petrol stations. With the company’s P/B (Price-to-Book Value) ratio at just 0.7x, it is considered undervalued.
Further positive momentum is provided by BCPG, whose strong business performance is underpinned by increased capacity revenue from its U.S. gas-fired power plants.
With the share price now looking attractive again, together with the added positive catalyst of re-entering SET50 Index, the investment recommendation has been upgraded to “BUY” at a target price of THB 44.00 per share.
